ZayZoon’s State of Employee Financial Wellness Survey Finds Employees Who Struggle Financially Perform Worse at Work

By Business Wire Last updated Jul 23, 2024

63% of HR professionals agree, highlighting financial stress is not just a personal problem but a major workplace issue HR leaders need to address

Today, ZayZoon, the Earned Wage Access (EWA) provider for small and mid-sized businesses, published its annual State of Employee Financial Wellness report. This report offers critical insights from a survey of 5000 employees and 500 HR professionals in various industries across the United States, exploring the profound impact of financial stress on employee performance and organizational success.

Financial Stress: A Workplace Epidemic

The report presents a stark reality: financial stress is no longer a private issue but a significant business concern. 50% of surveyed employees experience financial stress daily, which employees and HR professionals alike noted negatively impacts employee focus, morale, and overall work quality. 52% of surveyed employees stated that they are stressed about their finances daily or multiple times per day.

Data from ZayZoon’s new report shines a spotlight on the seriousness of the situation:

Severe Financial Situations: Over 61% of HR professionals noted that employees live paycheck to paycheck, with significant numbers facing eviction, medical costs, wage garnishment, bankruptcy, and other strenuous financial challenges.
Common Stressors: The primary financial concerns for employees include paying bills (40%), rent/mortgage payments (17.6%), and groceries (16.8%). Nearly 80% of employer respondents stated that financial stress impacts employee morale and mental health.
Limited Savings and Poor Credit: 58% of employees have no savings for unexpected expenses, and 71% have poor to fair credit scores, exacerbating their financial woes. Almost 30% of employee respondents have $-600 left in their bank account every month and more than half of the employee respondents have a negative balance after paying their bills and required expenses each month.

“In an era marked by inflation, wage stagnation, and a challenging job market, financial stress has become a significant issue not just for individuals, but for businesses as well. Financial stress infiltrates workplaces, leading to increased absenteeism, reduced morale, and diminished productivity,” said Tate Hackert, co-founder and President at ZayZoon. “Our report found that in the past year, employers have become increasingly aware of financial stressors for their employees, including living paycheck to paycheck, food insecurity, or even homelessness, making it clear that employee financial wellness should be a priority in the workplace.”

Earned Wage Access: A Key Solution

EWA allows employees to access a portion of their earned wages before payday, providing a critical lifeline for those facing immediate financial needs. Employees need resources that prevent them from relying on predatory practices like payday loans and overdraft fees. The report highlights the necessity for comprehensive financial wellness programs, which can significantly reduce financial stress and enhance employee productivity. Nearly half (47%) of surveyed HR professionals whose organizations use EWA say it has made their operations more efficient.

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